Skandia Property Fund sub adviser Nigel Pickup (ING Real Estate) is taking further advantage of depressed property prices by again tapping into the funds GBP 72 million war chest to buy more property this time six retail units in Ipswich for GBP 12.35 million.
The asset was formerly a department store which was converted in the 1980s to provide three retail units with frontage to Tavern Street and three more to the rear fronting Buttermarket. The units are arranged over a variety of attractive period buildings known as Corder House.
The acquisition comes just two months after his first move back into the property market with the acquisition of Lakeside 5000, a modern office headquarters based on the Cheadle Royal Business Park, Manchester for GBP 8.7 million. The purchase coincided with the first positive returns seen in the commercial property market for nearly two years as property has lagged behind equities in rallying ahead of better economic news.
With investors suffering falling commercial property prices as economic conditions worsened so Pickup maintained high levels of liquidity in the Skandia fund. Now that liquidity continues to be put to good use to pick up long term bargains in the commercial property market.
We are really seeing signs of increased interest in commercial property and with the Skandia Property Fund receiving strong net inflows, we are pleased to see the attractive opportunities that ING are managing to find in the commercial property market, says SIG senior portfolio manger, Ryan Hughes.
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